Lord of Life Lutheran Church in Chagrin Falls added to the list of Richard Zakarian lawsuits

ELYRIA -- Lord of Life Lutheran Church in Chagrin Falls has been added to the long list of plaintiffs suing Lorain tax consultant Richard Zakarian in Lorain County Common Pleas Court.

The church is claiming Zakarian misappropriated $91,873.42 that was supposed to go to the Internal Revenue Service and the state to pay taxes.

According to the lawsuit filed yesterday, in October 2010, Zakarian sent a letter to the church saying it was eligible to receive a grant to pay for two years of free payroll services, including handling of all deposits and returns for IRS forms 940 and 941 and other services. Zakarian was to provide the service starting Jan. 1, 2011, according to the service agreement. Beginning in January 2011 and continuing through Aug. 10 of this year, Zakarian prepared payroll tax returns for the church, but it was discovered Aug. 10 by the church that Zakarian had not filed any of the tax returns or paid any of the taxes, according to the lawsuit.

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The returns were prepared "for the sole purpose of deceiving plaintiff (the church) into believing that defendants (Zakarian and Ben Franklin Tax Service) were performing their other duties and obligations pursuant to the contracts," the suit states.

The church claims Zakarian was to give $83,492.29 to the IRS and $8,381.13 to the state.

Zakarian, 46, is still being held at the Lorain County Jail on two counts of theft involving Spitzer Management and for $15,000 a client said was given, but not invested in a retirement account. Sixteen other companies have allegedly fallen victim to Zakarian and Ben Franklin Services and 11 companies have joined Spitzer Management in a lawsuit it filed in August accusing Zakarian of failing to file tax returns and not accounting for more than $753,831 Spitzer gave the Zakarian and his company.

Others lawsuits against Zakarian are from Tom and Jack's Lounge Inc., of Wooster, suing Zakarian and his company for more than $160,456, claiming mistakes in the filings and preparation of federal and state tax returns and for failing to deposit payroll taxes with appropriate governmental agencies. Pooh County Day Nursery in Cleveland sued Zakarian for at least $125,000 and is claiming the payroll and tax service kept more than $117,000 that was suppose to cover payroll taxes, but was never sent to the IRS.

Theft complaints to the Lorain Police Department were brought by the Animal Charity Humane Society in Youngstown and Isabel Pallens, owner of Pallens Auto Concepts in Lorain. Pallens told police she hired "Ben Franklin Payroll Services" to complete and file her company's federal, state and city tax returns and claims Zakarian took $20,198 from her business and the money was not used to pay taxes.

With the church's lawsuit and the 16 other victims, Zakarian is accused of stealing all together about $1.9 million.

According to the clerk's office, Zakarian is set for trial Feb. 21, 2013.